FTX Exchange
FTX Trading Ltd., commonly known as FTX, was a cryptocurrency exchange and hedge fund that has since declared bankruptcy. Established in 2019, FTX quickly rose to prominence, becoming the third-largest cryptocurrency exchange by trading volume at its peak in July 2021, with over one million users. The company was incorporated in Antigua and Barbuda and headquartered in the Bahamas. It was closely linked to FTX.US, a separate platform serving U.S. residents.
On November 11, 2022, FTX filed for Chapter 11 bankruptcy in the United States. Concerns about the company’s stability began with a November 2022 report from CoinDesk, which revealed that Alameda Research, a sister company to FTX, held a substantial portion of its assets in FTX’s native token, FTT. This revelation prompted Binance CEO Changpeng Zhao to announce that Binance would liquidate its FTT holdings, sparking a surge of customer withdrawals from FTX. Unable to meet withdrawal demands, FTX faced a liquidity crisis. Binance initially expressed interest in acquiring FTX to help recover customer funds but withdrew the offer a day later, citing reports of mismanaged funds and ongoing investigations by U.S. authorities.
The fallout continued as FTX’s founder, Sam Bankman-Fried, was arrested in the Bahamas on December 12, 2022, at the request of the U.S. government, facing charges of financial misconduct. The collapse of FTX marked one of the most significant failures in the cryptocurrency industry’s history.
Contact Info
- ftx.com
- Nassau, New Providence, The Bahamas
